LIONSTAR MANUFACTURING LTD v. ZOO INTERNATIONAL PTE LTD

LIONSTAR MANUFACTURING LTD v. ZOO INTERNATIONAL PTE LTD

Applying a holistic assessment, the court found Lionstar obtained the practical outcome it sought (withdrawal/undertaking) and that the circumstances did not justify departing from the ordinary rule that costs follow the event; there was insufficient certainty of petitioners' merits to justify denying costs or awarding indemnity costs, so the court awarded costs to Lionstar on a party-and-party basis and made a summary assessment of HK$350,000 (HCCW) and HK$250,000 (HCMP).

Citation
[2019] HKCFI 1664
Parties
Plaintiff (hcmp 1679/2018); Respondent (hccw 263/2018): Lionstar Manufacturing Limited; Defendant (hcmp 1679/2018); Petitioner/claimant (statutory Demand): Zoo International Pte Limited; Petitioner (hccw 263/2018): Transworld Management Limited
Court
Court of First Instance
Jurisdiction
Hong Kong
Judgment Date
28 June 2019
Case Number
HCCW263/2018
Procedural Posture
Winding Up Petition (hccw 263/2018) and Ancillary HCMP Injunction Proceedings (hcmp 1679/2018) / Ruling on Costs After Settlement/withdrawal and Undertakings Following Ex Parte Injunctions
Outcome
Costs awarded to Lionstar Manufacturing Limited (the Company) on a party-and-party basis; indemnity costs refused
Legal Topics
Winding Up, Statutory Demand, Costs After Discontinuance/settlement, Transfer of Business (tbo), Indemnity Vs Party and Party Costs
Source Language
EN
Companies Law Insolvency Civil Procedure Costs Winding Up Statutory Demand Costs After Discontinuance/settlement Transfer of Business (tbo) +1 more

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Parties

Lionstar Manufacturing Limited

Plaintiff (hcmp 1679/2018); Respondent (hccw 263/2018)

Zoo International Pte Limited

Defendant (hcmp 1679/2018); Petitioner/claimant (statutory Demand)

Transworld Management Limited

Petitioner (hccw 263/2018)

Procedural Posture

Winding Up Petition (hccw 263/2018) and Ancillary HCMP Injunction Proceedings (hcmp 1679/2018) / Ruling on Costs After Settlement/withdrawal and Undertakings Following Ex Parte Injunctions

Legal Issues

  1. 1 Whether costs should follow the event after settlement/withdrawal of petitions and undertakings
  2. 2 Extent to which court should examine merits when awarding costs following discontinuance or settlement
  3. 3 Application of the discontinuance principle vs successful party approach

Ratio Decidendi

Applying a holistic assessment, the court found Lionstar obtained the practical outcome it sought (withdrawal/undertaking) and that the circumstances did not justify departing from the ordinary rule that costs follow the event; there was insufficient certainty of petitioners' merits to justify denying costs or awarding indemnity costs, so the court awarded costs to Lionstar on a party-and-party basis and made a summary assessment of HK$350,000 (HCCW) and HK$250,000 (HCMP).

Court Disposition

Costs awarded to Lionstar Manufacturing Limited (the Company) on a party-and-party basis; indemnity costs refused

Orders

  • Lionstar Manufacturing Limited to have costs in HCCW 263/2018 assessed and summarily fixed at HK$350,000 payable by Transworld Management Limited
  • Lionstar Manufacturing Limited to have costs in HCMP 1679/2018 assessed and summarily fixed at HK$250,000 payable by Zoo International Pte Limited